Economics Multiple Choice Question – 25 September 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

sacks of coffee beans
Photo by Kelly Lacy on Pexels.com

What may cause an individual to save a higher proportion of their income?

Select ONE answer:

  1. a belief that the price of goods will rise in the future
  2. a fall in the rate of interest paid by the country’s banks
  3. a fear that income will fall in the future
  4. a rise in the individual’s wish to enjoy higher consumption immediately

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS4 and KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Economics Multiple Choice Question – 24 September 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

sacks of coffee beans
Photo by Kelly Lacy on Pexels.com

Which function do central banks and commercial banks have in common?

Select ONE answer:

  1. acting as a banker’s bank
  2. controlling monetary policy
  3. dealing with foreign exchange
  4. supervising the banking system

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS4 and KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Economics Multiple Choice Question – 23 September 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

sacks of coffee beans
Photo by Kelly Lacy on Pexels.com

Governments sometimes intervene in the economy when the market fails.

What is the MOST likely reason why government intervention may make the situation worse?

Select ONE answer:

  1. Government decisions can take a long time to have an effect.
  2. Governments consider the views of both consumers and producers.
  3. Governments have more resources to calculate costs and benefits than private firms.
  4. Governments may take decisions to reduce negative externalities.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

  1. Correct
  2. Not correct
  3. Not correct
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Economics Multiple Choice Question – 22 September 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

sacks of coffee beans
Photo by Kelly Lacy on Pexels.com

How might the concept of price elasticity of demand (PED) be useful for a government?

Select ONE answer:

  1. to determine the effect on employment of a change in income tax
  2. to determine the effect on government revenue of a rise in the rate of interest
  3. to determine the effect of providing a public good
  4. to determine the result of imposing a tariff on imports

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Economics Multiple Choice Question – 21 September 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

sacks of coffee beans
Photo by Kelly Lacy on Pexels.com

A market consists of 10 individuals with different demand curves in a given period.

What is a calculation that could be used as part of the process to determine the market equilibrium in that period?

Select ONE answer:

  1. at each price add the quantities demanded by each individual
  2. at each quantity average the price that each individual is prepared to pay
  3. combine the price elasticity of demand (PED) and the price elasticity of supply (PES) at each price
  4. determine the PED and multiply it by the quantity demanded

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

  1. Correct
  2. Not correct
  3. Not correct
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.